Indonesia's palm oil output could fall by up to 3 mln tons next year due to a
severe El Niño, the Indonesian Palm Oil Association (Gapki) said, a development
that would add further upward pressure on prices. Gapki said the reduction is
smaller than earlier estimates but still equates to roughly 5% of this year's
output; it expects 2026 production to be broadly in line with last year’s 56.6
mln tons. Gapki chairman Eddie Martono said heat and dry conditions have
hindered fertilizer application and will show up in next year's harvest; some
rain has trimmed an earlier 4–5 mln-tonne estimate to about 3 mln tons, though
most growing areas are entering El Niño conditions.
